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Rank: Horsham Forum Junior
 
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Rank: Horsham Forum Kingpin
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Rank: Horsham Forum Junior
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Last Login: 08 June 2006
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| Kaletsky always makes interesting reading! . "The average British family earned £2000 in the first week of this month". . That figure came from Rightmove the online estate agent. The £2000 is the increase in asking price on average for newly listed Rightmove properties. . Here is an analogy. My neighbour has a car, identical to mine, that he couldn't sell last year. I decide to sell mine now and advertise it for £1000 more than his. Great!!! I'm £1000 better off. Ok ... so my other neighbours have decided to sell their cars as well ... no problem ... I'm rich!! . Rightmove are owned by four of the largest Estate Agents in the UK. Salespeople are there to sell. Remember that when you read the full report here: . http://www.rightmove.co.uk/pdf/p/hpi/HousePriceIndex16January2006.pdf
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Rank: Horsham Forum Kingpin
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Rank: Horsham Forum Kingpin
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Last Login: Today @ 17:22
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Also see this headline: A lot of potential new houses in Southwater and Horsham have ultimately had their planning permission rejected in recent years. That has probably had an effect on house prices in the area.
--------------------www.visithorsham.co.uk | www.virtualhorsham.co.uk
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Rank: Horsham Forum Kingpin
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| This (just published) report from The Centre for Economics and Business Research suggests the market will slow down but not crash. Eventually it will gradually rise again due to supply exceeding demand. I know a lot of people are hoping for a crash. I personally would benefit from a crash but I think those waiting will be disappointed. http://newsvote.bbc.co.uk/1/hi/business/4638802.stm
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Rank: Horsham Forum Junior
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| The BBC report also quotes Capital Economics who expect prices to continue falling. . The truth is that despite poor economic fundamentals that scream of a crash there is one unknown which the Economists find difficult to factor: Confidence. . In the past few years many have stretched their finances to buy property as they believed prices would continue to rise. They have been lulled by low interest rates and an economy supported by high public sector spending. . Now, confidence has fallen and the market has stalled. The mortgage companies and estate agents are unleashing a spin campaign to re-ignite that confidence. Count the number of time you see "House prices 'set' to rise this year!". . It is rare to see much coverage of falling prices. For example, on 24 Jan 06 the Halifax released their Quarterly House Price data. West Sussex houses fell by £16,000 or 7% over the year. Kept that quiet didn't they!! . See: http://www.hbosplc.com/economy/includes/UKQ42005.doc
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Rank: Horsham Forum Junior
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Last Login: 08 June 2006
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| Why am I wrting this stuff? . There seems to be a belief that high house prices are a good thing. But, they do more harm than good. Evan Davis from the BBC puts it nicely here: http://news.bbc.co.uk/1/hi/business/3701070.stm . The world has seen a bubble in asset prices. The UK in particular has seen massive rises in house prices supported by nothing more than unprecedented debt. Anyone who pays these bubble prices is setting themselves up for financial disaster. . Imagine if every buyer offered 30% below asking price tomorrow. Houses would be sold and the economy would get moving again. Who would lose out? Think about it.
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